The Advice Process
Although the exact level of support we provide will depend on your personal circumstances, it will usually follow the pattern below:
01
Understand Your Situation
Our first task is simply to listen, so that we can fully understand your situation. We may need to ask you for more information or paperwork. The advice we give can only be based on what you tell us about your situation.
02
Your Income and Expenditure
We will discuss your income and look at ways to bring in extra money. We may help you apply for any benefits you may be entitled to. We will then look together at your bills and spending, and highlight any savings you could make.
03
Look at Your Debts
We will look at your debts, starting with any ‘priority’ debts that have the biggest consequences if you don’t pay them – these will be dealt with first. We will also advise you about anything urgent like legal action, bailiffs or eviction.
04
Create a Financial Statement
We will usually help you create a financial statement, which can be used to explain your situation to creditors.
05
Discuss Your Options
We will discuss the best options to improve your situation, including insolvency if appropriate, and will agree an action plan with you.
06
Make a Plan
We will introduce you to our money skills programme and budget coaches so you can become more confident managing your money day to day.
Your options
Everyone’s journey out of debt is different, and there may be a number of potential options available to you.
Working with Crosslight
Before you start working with us, there are some important things you need to know about our service, and what we expect from you.
Your Credit Rating
If we or you write to the people you owe money to and let them know you are having difficulty, your credit rating may be affected. Your credit rating will also be affected if in due course your payments are reduced or stopped. In both cases, this information will remain on your credit record for up to six years and this could make running a business, getting a mortgage, renting somewhere to live, or getting credit, more difficult.
Priority Debts
Whenever we give advice about your debts, we will treat 'Priority Debts' differently to other types of debt and will always advise that these types of debts are repaid first, even if that means that other types of debts cannot be repaid as fast/at the same time. Priority Debts are things like Rent/Mortgage, Council Tax, Utilities, Court Fines, Tax debts, Benefit Overpayments, and Fines.
Ongoing Payments for your essential bills
Even if you have arrears, it is important that you continue to make payments for your ongoing rent and/or mortgage, council tax, gas, and electricity in particular. These are priority items and it is very important that you make sure they are paid on time and in full – paying different amounts every so often is not acceptable, especially when it comes to your rent (and may result in possible eviction proceedings being started). If you think there may be problems in making these payments, you should contact us immediately if you haven't mentioned it already.